Mumbai, May 12: Mumbai-based media company Popular Entertainment Network (PEN) is planning to go public sometime in August this year. The company is offering 25 lakh shares of Rs 10 each. Ahead of the IPO, Transatlantic Corporation (of Spain) has picked up shares worth $5 million (20 per cent stake) of the company. According to Jayantilal Gada, the managing director of PEN, the main objective of the public offer is to fund the company's future expansion plans. The company is not taking the book-building route.Besides the expansion of its current business, PEN is also contemplating launching a Hindi film music channel over the next couple of months. Christened as `PEN Music', PEN has estimated the cost of running the channel at Rs 15 crore. The operational cost of the music channel will be minimal PEN already owns the audio rights to a number of films including the songs in those films.Public holding in the company will be 25 per cent and post-issue promoters' stake will be 55 per cent. According to Gada, Earnst & Young has valued the company at Rs 200 crore.
For fiscal 2000, the company recorded a net profit of Rs 2.65 crore on total income of Rs 15.18 crore. For fiscal 2001, the company projects a several fold jump in turnover to almost Rs 114 crore and a net profit of Rs 6.66 crore. According to Rajendra K Haran, president (corporate affairs and finance) & company secretary, PEN, for fiscal 2000, the turnover reflects only one month's business relationship between DD and PEN. ``Our business with DD started only in February this year. For the current year, we have a assured business of Rs 60 crore from the national broadcaster,'' Haran explained. And with other channels, PEN has already booked for 500 hours of business for fiscal 2001.
PEN is the leading media company with almost 2000 Hindi film rights under its belt. In India, other than PEN, only National Film Development Corporation (NFDC) has more film rights, said Gada. The company, with different joint ventures with overseas companies, has acquired satellite, pay-channel and cable-TV rights for these Hindi films. Among the list of films for which it has rights includes mega hits like Sholay, Sagaar, Bobby, Hero and others. It has recently acquired the TV and audio rights of Kaho Na Pyar Hai. Almost all the leading cable channels and Doordarshan are among its clients. Through one of its associate companies, PEN is currently producing tele serials - Samrat Ashok and Buddha. Both the projects are pegged at Rs 33 crore each. Mahasangram and Saagar are the two other serials which are also under production.
The board of directors PEN consists of people from the entertainment industry. Among others, the PEN board consists of Praksh Mehra, Mehul Kumar and Chandrapraksh Dwivedi from the entertainment industry.
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